Oil WTI (a crude oil primarily sourced from Texas and considered one of
the highest quality Oils in the world) moved into a corrective channel
which started on the 21st of April 2020. Subsequently filling the gap,
which was caused by an oversupply and shrinking demand for Oil seen
earlier this year.
Does this move higher mean Oil has seen the worst of its days and is on
the rise? No, research shows more lows are to come. U.S. Crude Oil
Inventories missed expectations on the 24th of June 2020 with shell
companies oversupplying the market.
The fundamentals are now supporting the technical side for a move lower
to retest the 32 level. A break and retest of channel support will
confirm the move lower.
A break of current highs at $41.16 will mean a test of the upper channel
were longs will be favored to around 48. The 61.8 Fibonacci retracement
of the move lower is at $44 which we can see as critical resistance.
Res:41.16; 44.00; 48.00
Sup:36.38; 32.00; 30.00
None of the material published constitutes a trading recommendation of any particular security, portfolio of securities or investment strategy. This should not be taken as personal advice concerning nature, potential, value or suitability of any particular security, portfolio of securities, investment strategy or other matter. Past performance does not guarantee future results.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.